More on Establishing Materiality
The court in Holtzclaw v. Bankers Mutual Insurance Co., 448 N.E. 2d 55 at p. 58 (Ind. App. 3d Dist., 1983), found that the representations of the insured are material to the risk if a truthful answer would lead the insurer to decline issuing insurance or charge a higher premium. In Indiana, in order to obtain rescission, the insured must prove materiality by evidence that establishes a higher premium would have been charged or the insurer, had it known the truth, would have refused the insurance.
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